McKinsey Debate: Carbon Tax vs. Cap and Trade

In an earlier posting, I talk about the different carbon cap policies. I am a huge advocate for the Cap and Trade system, except specifically, I believe that the "Cap and Dividend" system will work the best in the long term. Tax Credits don't seem to have the same affect on the economy or investment companies because there is no long term guarantee. If we create a market for carbon emissions, this will force companies to reduce carbon emissions and will encourage broad scale investment in renewable energy.

Website:
http://whatmatters.mckinseydigital.com/the_debate_zone/carbon-tax-vs-cap-and-trade